How Will the FTX Collapse Affect Silvergate? A Bear and a Bull Debate - Ep. 431
Ram Ahluwalia, CEO and cofounder of crypto-native investment advisor Lumida, and Marc Cohodes, individual investor and former hedge fund manager, have a heated debate about Silvergate, a crypto-friendly bank that plays a key role in integrating crypto with traditional finance and is currently under scrutiny due to its ties with FTX and Alameda. Both Marc and Ram have a vested interest in Silvergate. Marc is shorting the stock, while Ram is longing it.
Show highlights:
- why Silvergate plays such a vital role in the movement of money within the crypto industry
- whether Silvergate runs proper KYC and AML practices
- whether Silvergate has a $1 billion hole in its balance sheet
- whether regulators will go after Silvergate as they are doing with FTX
- why Marc thinks the FTX collapse wouldn't have happened without Silvergate
- whether Silvergate was complicit with FTX’s activities or simply negligent
- why Ram believes this case is different from JPMorgan's involvement with Madoff
- what regulatory actions might come in the near future for Silvergate
- why Ram thinks regulators will go to "great lengths" to avoid a bank failure
- what would it take for Ram and Marc to change their minds
Take Unchained's 2022 survey!
Unchained is doing its annual survey. Tell us how you think we’re doing and how we could improve, whether it be on the podcast, in the newsletter, or in our premium offering. Looking forward to hearing your thoughts!
Thank you to our sponsors!
Guests:
Ram:
- Ram’s thread on Silvergate
- Ram’s previous appearances on Unchained:
- Genesis May Be Facing Bankruptcy. Could It Take DCG Down With It?
- Why Genesis Could Very Well Be Insolvent, Not Just Illiquid
Marc:
Episode links:
- Class action lawsuit against Silvergate
- The Block: Silvergate CEO seeks to reassure investors over crypto contagion
- Letter from Senators Elizabeth Warren, John Kennedy, and Roger Marshall
- The Guardian: JP Morgan Chase to pay more than $2bn in penalties for Madoff ties
- The Financial Times: Silvergate: from tiny local lender to bank behind the crypto boom
- WSJ: Crypto Is Taking a Few Small Banks on a Wild Ride
- Bloomberg:
- These Banks Were Left Holding the Bag in Crypto Implosion
- An Obscure Bank Found Its Key to Success. Then FTX Collapsed
- CoinDesk: Crypto Bank Silvergate Says Its BlockFi Digital-Asset Deposit Exposure Totals Less Than $20M
- New York Post: Crypto ‘smart’ money? Big traders fell for Sam Bankman-Fried
- NBC: Sen. Warren demands answers from Silvergate Bank about its business dealings with FTX
- Dylan LeClair’s Twitter thread
Learn more about your ad choices. Visit megaphone.fm/adchoices
Activity